Kansas Enterprises purchased equipment for $76,000 on January 1, 2021. The equipment is expected to have aten-year service life, with a residual value of $8,850 at the end of ten years.Using the double-declining balance method, depreciation expense for 2021 would be: (Do not round yourintermediate calculations)Multiple Choice$6,350.$13,430.$15,200.$7,600. Kansas Enterprises purchased equipment for $80,000 on January 1, 2021. The equipment is expected to have aten-year service life, with a residual value of $8,250 at the end of ten years.Using the straight-line method, depreciation expense for 2021 would be:Multiple Cholce$7,175.$8,825.$16,000.$8,000.

Name: Kansas Enterprises purchased equipment for $76,000 on January 1, 2021
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: Kansas Enterprises purchased equipment for $76,000 on January 1, 2021. The equipment is expected to have aten-year service life, with a residual value of $8,850 at the end of ten years.Using the double-declining balance method, depreciation expense

Depreciation as per straight line method = (Cost - Residual value)/Useful life Double-declining rate…

Business

Accounting

Kansas Enterprises purchased equipment for $76,000 on January 1, 2021. The equipment is expected to have a ten-year service life, with a residual value of $8,850 at the end of ten years. Using the double-declining balance method, depreciation expense for 2021 would be: (Do not round your intermediate calculations) Multiple Cholce $6,350. $13,430. $15,200. $7,600.

Kansas Enterprises purchased equipment for $76,000 on January 1, 2021. The equipment is expected to have a ten-year service life, with a residual value of $8,850 at the end of ten years. Using the double-declining balance method, depreciation expense for 2021 would be: (Do not round your intermediate calculations) Multiple Cholce $6,350. $13,430. $15,200. $7,600.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Cutter Enterprises purchased equipment for $66,000 on January 1, 2021. The equipment is expected to have a five-year life and a residual value of $8,100. Using the double-declining-balance method, depreciation for 2022 would be: Multiple Choice $26,400. $13,896. $15,840 None of these answer choices are correct.
KE On January 2, 2023, Konan Corporation acquired equipment for $800,000. The estimated life of the equipment is 5 years or 90.000 hours. The estimated residual value is $30.000. What is the balance in Accumulated Depreciation on December 31, 2024, it Konan Corporation uses the double-declining-balance method of depreciation? (Round any intermediary calculations to two decimal places and your final answer to the nearest dollar) A $192.000 OB $308,000 OC. $512,000 OD. $770,000 COND
Kansas Enterprises purchased equipment for $74,500 on January 1, 2021. The equipment is expected to have a ten-year service life, with a residual value of $6,750 at the end of ten years. Using the straight-line method, depreciation expense for 2022 and the book value at December 31, 2022, would be: Multiple Choice $6,775 and $60,950. $7,450 and $52,850. $6,775 and $54,200. $7.450 and $59,600.
Nevertire Ltd purchased a delivery van costing $52,000. It is expected to have a residual value of$12,000 at the end of its useful life of 4 years or 200,000 kilometres. Ignore GST.Required:a) Assume the van was purchased on 1 July 2019 and that the accounting period ends on 30 June.Calculate the depreciation expense for the year 2019–20 using each of the following depreciationmethods (6 marks) straight-line diminishing balance (depreciation rate has been calculated as 31%) units of production (assume the van was driven 78,000 kilometres during the financial year)b) Record the adjusting entries for the depreciation at 30 June 2021 using diminishing balancemethod. c) Show how the van would appear in the balance sheet prepared at the end of year 2 using Straightline method.
Early in January 2019, Tellco Inc. acquired a new machine and incurred $11,000 of interest, installation, and overhead costs that should have been capitalized but were expensed. The company earned net operating income of $89,000 on average total assets of $782,000 for 2019. Assume that the total cost of the new machine will be depreciated over 10 years using the straight-line method. Required: a. Calculate the ROI for Tellco for 2019. b. Calculate the ROI for Tellco for 2019, assuming that the $11,000 had been capitalized and depreciated over 10 years using the straight-line method. (Hint: There is an effect on net operating income and average assets.) c. Given your answers to parts a and b. why would the company want to account for this expenditure as an expense? d. Assuming that the $11,000 is capitalized, what will be the effect on ROI for 2020 and subsequent years, compared to expensing the interest, installation, and overhead costs in 2019? Complete this question by entering your…
On May 22, 2020, Colossal Corporation purchased machinery for $80,000. The useful life of this machinery is estimated at 10 years, with a $10,000 residual value. (i). Assume that Colossal uses straight-line depreciation and the half-year convention. Depreciation expense on this machinery will be: Select one: O a. $4,000 in 2020 and $8,000 in 2021 O b. $3,500 in 2020 and $7,000 in 2021 O c. $8,000 in 2020 and $8,000 in 2021 d. $7,000 in 2020 and $7,000 in 2021
On January 1, 2018, the Allegheny Corporation purchased machinery for $150,000. The estimated service life of the machinery is 10 years and the estimated residual value is $7,000. The machine is expected to produce 300,000 units during its life. Required: Calculate depreciation for 2018 and 2019 using each of the following methods. 1. Straight line. 2. Sum-of-the-years'-digits. 3. Double-declining balance. 4. One hundred fifty percent declining balance. 5. Units of production (units produced in 2018, 41,000; units produced in 2019, 36,000). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate depreciation for 2018 and 2019 using sum-of-the-years' digits. 2018 2019 Sum-of-the-years' digits depreciation Rate per Year Depreciable Base X X X = = Required 5 Depreciation Expense
On Jan. 1, 2021, Mother, Inc., whose financial year end is every Dec. 31, purchased a unit of equipment at a total cost of P10,000,000. The equipment is estimated to have a useful life of 5 years with a residual value equal to 10% of its cost. How much is the depreciation expense for 2021 using the straight line depreciation method?
ABC Company has an equipment acquired on January 1, 2018 at a cost of P2,200,000 with estimated residual value of P200,000 and 20 years estimated useful life. On December 31, 2021, the replacement cost of the equipment is P2,400,000. Two years after, the depreciated replacement cost has declined to 1,470,000. Round off percentage to whole number and gross-up value to the nearest peso if you are required to gross up. On December 31, 2024, the equipment’s carrying value is
On April 1, 2021, Metro Co. purchased machinery at a cost of $42,000. The machinery is expected to last 10 years and to have a residual value of $6,000. Required: Compute depreciation for 2021 (for 9 months, 4/1/21 ~ 12/31/21) assuming the sum-of-the-years'-digits method is used. No credit if no computation is shown.
Kansas Enterprises purchased equipment for $80,000 on January 1, 2021. The equipment is expected to have a ten-year service life, with a residual value of $8,550 at the end of ten years. Using the straight-line method, the book value at December 31, 2021, would be: Multiple Choice $72,000. $64,305. $71,450. $72,855.
On July 1, 2020, ABC Company sells equipment for $105,000. The equipment originally cost $300,000, had an estimated 5-year life and an expected residual value of $50,000. The accumulated depreciation account had a balance of $200,000 on January 1, 2020, using the straight-line method. The gain or loss on disposal is _________________. (Indicate whether gain or loss)